18 jun. 2009

Lawmakers object to Fed powers

By CAROL E. LEE

After Obama's remarks on regulatory reform, a group of Democratic legislators reacted to his message in a conversation with reporters.

Rep. Barney Frank (D-Mass.) called POTUS's plan a very important step -- but said Congress probably won't give him everything he wants. Members will come up with a "product that looks a lot like what the president wants."

"I like how he framed it," Sen. Chris Dodd (D-Conn.) said, adding that there will be debate over the details.

Both of them said they will have reform done by the end of the year.

The sticking point between the administration and Congress seems likely to be the regulatory role of the Federal Reserve, with Frank and Dodd making clear that they do not agree with Obama's plan to expand the Fed's powers.

"There’s not a lot of confidence in the Fed," Dodd said.

With health care reform occupying so much time, the Senate is not going to consider the financial regulations legislation "until the fall some time," Dodd said.

Rep. Melissa Bean (D-Ill.) vowed that there will be "very prompt action" on POTUS's plan, though larger structural reform will take more time. Rep. Jim Himes (D-Conn.), a former Goldman executive, agreed that "some of this stuff" will be slow in coming.